The BRAD BLOG has received exclusive detailed information about a developing potential class action securities litigation against Diebold, Inc. (stock symbol: DBD). The class for the suit will involve shareholders who purchased or owned stock in the Ohio-based company any time from October 22, 2003 through September 21, 2005.

Though we are not at liberty at this time to discuss the specifics of the potential litigation and the causes of action in the complaint being compiled, The BRAD BLOG has learned that the class action lawsuit, currently being drawn up, will involve securities fraud violations and other troubling matters for the controversial company, its CEO as well as current and former members of its Board of Directors.

VelvetRevolution.us (an organization co-founded by BRAD BLOG managing editor, Brad Friedman) is seeking additional individuals and groups who may qualify as plaintiffs in the specified class. Those who owned or purchased Diebold stock, or mutual funds which carried Diebold during the period mentioned, are asked to contact LawSuit@VelvetRevolution.us where information submitted may be turned over to attorneys for possible addition to the plaintiff class.

Union groups who own or owned shares of Diebold or mutual funds which invest in the company are specifically urged to contact VR about joining the class action.

The mutual funds which are most heavily invested in Diebold are listed here. Information on "Insider Transactions" is listed here.

Diebold, Inc. is the controversial Voting Machine and ATM manufacturer who was recently compared to Enron by an anonymous company insider The BRAD BLOG dubbed "DIEB-THROAT" in a series of exclusive reports. The Internet news site, RAW STORY ran a new exclusive interview with DIEB-THROAT yesterday revealing additional details on the inner-workings of the company and potential legal issues they may face.

Shortly after our first report on DIEB-THROAT, Diebold's stock price plummeted some 15.5%. The company attributed their troubles at the time to shortfalls in the wake of Hurricane Katrina and on the same day announced the resignation of their chief operating officer (COO) and President, Eric C. Evans. Our source, DIEB-THROAT, challenged the company's response to the falling stock prices in the wake of lower than expected earnings by suggestion that "Using Hurricane Katrina is a poor excuse for bad products - the last time this kind of deception occurred it was called Enron."

Diebold CEO Walden O'Dell has come under harsh criticism for his statement to Republican fundraisers that Diebold he (see explanation for correction below) was committed to delivering the electoral vote of the state of Ohio to George W. Bush prior to the 2004 Presidential Election. O'Dell was part of Bush's "Rangers and Pioneers," a group of individuals who had raised at least $100,000 each for Bush/Cheney's 2004 re-election campaign.

As well, the company has been facing other mounting troubles, legal and in the court of public opinion, over their implementation of software, hardware and various Elections Systems contracts around the United States as has been reported in have charged the company may be in violation of a court order stemming from that agreement. In North Carolina, Diebold recently lost an attempt in the court system to receive exemption from parts of a state law requiring the escrow of their voting system's software source code. They were certified anyway the next day in North Carolina, and some activists have questioned whether or not the certification was done according to state law and whether or not new legal proceedings may be launched there. And in California, a debate rages on concerning the possible re-certification of Diebold's touch-screen voting machines here after some 20% of their machines failed in a recent mock election test.

According to internal "Privileged and Confidential" documents of "Attorney Work Product" originally obtained and reported by Ian Hoffman of The Oakland Tribune in 2004, an estimate of legal costs in California for the Voting Machine giant was pegged by their attorneys at $535,000 - $925,000 for just a single two month period in order to fight mounting legal troubles in the state. Diebold's law firm, Jones Day fought in Los Angeles County Superior Court to keep those leaked memos from being further circulated.

The document estimating legal expenses [PDF] lists costs in regard to the Qui Tam Action filed (and eventually settled) by election watchdogs at BlackBoxVoting.org, the costs for fighting "Criminal Exposure" such as "legal analysis of potential criminal violations" and "White collar criminal law attorney pre-grand jury investigative advice" and even costs to the firm to "Monitor selected Web sites to gain key intelligence."

Concerning the potential of a new lawsuit against the company, DIEB-THROAT is not surprised, and expressed hopes to The BRAD BLOG in a recent email that some good may come from the possibilities of upcoming litigation:

"The denial of every documented problem with Diebold's voting system was bound to unravel sooner or later. I am not surprised that such a lawsuit has developed [as] the company consistently offered Wall Street deceptive information. Perhaps with the help of few patriotic plaintiffs our nation will be saved from Diebold's corporate takeover of our right to vote - and have that vote counted free from corporate and political influence."

The BRAD BLOG will, of course, continue to follow this story as it develops...

CORRECTION: A reader correctly pointed out that O'Dell promised that he, not necessarily his company, Diebold, as we originally reported, was committed to delivering the state of Ohio to George W. Bush in the 2004 election in his now-infamous fundraising letter to Republicans. More details here on that letter, here....

More on our DIEB-THROAT reports can be found here. Please help us to continue reporting on such stories with a donation to The BRAD BLOG! Our work is almost solely financed by your support and any help is much appreciated!

#2:
They'll use ES&S. They'll purge non-Repub voters. They'll put in their folks as "Democrat" poll watchers and vote counters. They'll even hack paper ballot scanners. If Diebold crashes, and reports of their death are, as of now, greatly exagerated, there'll still be plenty of work to do.

Rest assured, just because American voters want to be rid of Republicans doesn't mean it can happen. Right now America would vote to be rid of the Repub Congress, but as long as we have no voter verified paper ballots with an automatic random paper count of 5% or so, we're still doomed.

This is great news! If we can bring down Diebold, we have a chance to save democracy in our country. I have been screaming about E-voting since the idea was hatched in the mind of some corrupt republican a-hole. My question is why aren't the dems shutting down the house and senate for this issue. We have seen the absolute theft of elections at the federal, state, and local levels since 2000. The dems need to put this issue at the very top of their legislative agenda in January 2006. They ignore it at their own peril and at the further annihilation of America.

We know the ref#cklicans have no interest in fair elections. If they did, they would sign on to Rush Holt or Hillary Clinton's election reform bills. The GOP Christ killers and brown shirts know that they own the system and they feel it is their right and absolute moral obligation to steal elections and subvert the will of the American voter. Thanks to Bradblog for being a leader on this issue. Vigilance!

India, a huge country, had a successful election with a machine they perfected. It is accurate and tamper proof. If we had an honest commission for reforming our system, it would have been examined. Why are we so powerless?

I was in Columbus last Wednesday and again Monday. I don't think the people there know what's going down. Most aren't informed and they're not in charge. Only after the Repubs become so entrenched that they feel safe will the rumor of trouble leak out. Then, and only then, apparently will we see the fight. But, by then the next congressional electional will have occurred. We're in trouble in Ohio.

Mucho law suits and such might begin the fight in time to stop computerized vote counting (and fakery). It's a lot faster than creating grassroots movements. Besides, what good is a grassroots movement (short of war) if the vote is rigged. Court actions to prevent DREs should be quicker and more effective. If you can't verify a vote there's no proof it was ever cast.

I was also In Houston this past weekend (Thursday-Monday). Cheney came to town after I left to raise money for DeLay and Repub campaigns. I'm glad I was gone before he got there.

BTW, Houston is a beautiful city and the weather suited me just fine (50F-70F). Columbus was a cold 28F.

Is there anything at all that can be done in Ohio to prevent what the asshole Rebugs are trying to do? It's so blatantly obvious that they want total Republican control of Ohio, no matter how many laws they have to trample or change. What reason could there be to prevent investigations of corrupt voting machines or vote tampering, if not to protect the criminal element? I mean, for God's sake, why aren't the chicken shit Democrats raising Hell? They should be blasting the SoS Blackwell, the SoB Governor Taft and every damn Republican that signs on to that bill! There is no way to spin this - it is purely corrupt!

Diebold Board Authorizes Additional 4 Million Share Stock Repurchase
NORTH CANTON, Ohio, Dec. 7 /PRNewswire-FirstCall/ --- The Board of Directors of Diebold, Incorporated (NYSE: DBD) today authorized the company to repurchase up to 4 million shares of its common stock in the open market. This authorization is in addition to the approximately 500,000 shares remaining under its most recent 2 million share authorization from August 2005. The company has repurchased approximately 3.3 million shares to date in 2005. Diebold plans to opportunistically repurchase these shares as a means of returning cash to its shareholders. The company has 68,705,587 shares of common stock outstanding.

'We believe our shares represent an exceptional value at current market levels,' said Walden W. O'Dell, chairman and chief executive officer. 'In addition, this new authorization represents a strong vote of confidence in our ability to generate substantially improved results as we focus on the profitability and competitiveness of our business. The prospects for the markets we serve remain healthy, and the strategic actions we are taking will position us well for the future.'

Diebold, Incorporated is a global leader in providing integrated self- service delivery systems, security and services. Diebold employs more than 14,000 associates with representation in nearly 90 countries worldwide and is headquartered in North Canton, Ohio, USA. Diebold reported revenue of $2.4 billion in 2004 and is publicly traded on the New York Stock Exchange under the symbol 'DBD.' For more information, visit the company's Web site at http://www.diebold.com .

This is the single most important issue that faces the Dems --- really the democracy of this country --- if we can't count on fair and legal elections!

I believe that this is the only way the Republicans know how to win. If you simply look at the outcome of the November election in Ohio. In all the pre-election polls, the were favored to win by 40%. Everyone of them was voted down, including the conflict of interest in having a partisan Secretary of State that is also the head of a political party for that state! Now who on earth wouldn't see the folly in that?

I'm not sure we Dems can get organized enough to fight Diebold. Even if we do, there is still ES&S. So, I hope we aren't doomed to forever live under the rule of these corrupt, rotten, evil, mean-spirited Repugnants. (opps, Republicans)

What an ass-hole!!! I assume that's OK to say on this website since most of the BS I see is just that.... BS!!! Name sources you Dolt, or if you can't do that, they try to create a story that has some semblance of truth...a red-stater

EVERY CONGRESS PERSON --- HAS SOLD THEIR ASS FOR THE CORPORATE GOOD. WITH OUT THAT THEY CANT GET IT UP --- THE MONEY TO RUN --- I MEAN ... WHORES NEVER DO BETTER --- ALTHO THEY IMPROVE TECHNIQUES --- THEY MAKE THE SAME MONEY, OVER AND OVER AGAIN, AGAIN... A POLITICAN CANT DO THAT. GIVE THEMSELVES A RAISE RECENTLY TOO --- WAY TO GO.

Just when I was getting used to reading this blog again (which, by the way, I've donated to) like most ALL other blogs work, this again!

Why don't other blogs do this?

That was a rhethorical question.

Please...just follow the blog paradigm and keep things chronological. We'll scroll down and read what we haven't seen yet without you keeping in on top, which, by the way, totally throws a wrench into the machine.

Just when I was getting used to reading this blog again (which, by the way, I've donated to) like most ALL other blogs work...this again!

Why don't most other blogs do this?

That was a rhetorical question.

Please...just follow the blog paradigm and keep things chronological. We'll scroll down and read what we haven't seen yet without you keeping in on top, which, by the way, totally throws a wrench into the machine.

Good God. Enough with the voting fraud posts. Get over it. You libs are mental. You lost to Bush twice, and with the help of the Dems in control of the corrupt Florida voting system (it was, after all, Democrat-controlled counties with all the problems). Massive voting fraud perpetrated by leftists bit you in the butt. Enough already.

I dare you to get me started with the U.S. Supreme Court forcing the Florida Supremes to do their jobs and not redefine the roles of the executive and legislative branches of Florida's government.

Jesse: The source for the truthout report was freepress.org - Bob Fitrakis is a political science professor and election watchdog from Columbus Ohio. He has been on international teams of United Nations elections watchers. That's a credible source. See his other work, along with Harvey Wasserman at freepress.org. Oh, never mind - you're not interested in truth.

Kevin Mark Smith. Neither are you interested in truth. This is not about past elections, it is about future elections and how evidence points to the fallibility and corruptibility of election machines PARTICULARLY since Diebold and ES&S CEOs are Republicans and Republican donors. THAT'S a conflict of interest and if it was the Democrats acting the way Kenneth Blackwell is by pushing to change election law to specifically favor Republicans with no recourse to any kind of electoral challenge, then you fucking right-wingers would be howling from the rooftops. That's not democracy. That's not free and fair elections.

I believe that elections in 2000, 2002, and 2004 were stolen, manipulated, voters disenfranchised, but that's not even a concern anymore - it is history. What concerns me more is the future, and what you fucking idiot right-wingers don't seem to understand, as you boast about bringing freedom and democracy to far-off lands, is that the actions by the current GOP are dangerous TO YOU ALSO!!! Don't you get it?? As much as I think McCain is a whore and not to be trusted, he made some pretty lucid statements about the whole up-and-down vote/filibuster issue a few months ago...he said "this is bad for Republicans also - we're not always going to be in control, and payback is a bitch" (paraphrase).

regardless of your party affiliation, public trust in the voting system is essential. I hope Ohioans riot. I hope they march on the state capitol and drag the bums out. Enough is enough.

What I can't tell is whether or not this is a "stockholder derivative action" or one brought by a government agency for violation of security laws.

It is also not clear to me whether the action would be against Diebold for election related products or not. Enron had nothing to do with elections.

Another thing that is important is whether or not the contemplated action would reach to "child" corporations, assuming that Diebold is the "parent" company of other corps.

This is important, because one can be liable and the others not liable ...

For instance, the ATM machines seem to have good hardware and software, but it is the election machines that are having certification, openness, and other problems in election scenarios.

I can't see how it would be good for a shotgun suit that would potentially harm the good segments of the company, not associated with voting machines, and that have the technologically sound products (eg ATMs).

I think a lawsuit should heal what is wrong. For example, a lawsuit should be focused on forcing the election divisions or child corporations that do voting machines to come up to the quality and paper trail capacity of the ATM division.

I am covered in goosebumps!! WHEEEW! It is really amazing that the basis for every single act of corruption perpetrated by the naughty ol' republicans, and in all honesty, some democrats as well, is MONEY. Greedy Bastiges. Well , nothing lasts forever. Just ask Duke Cunningham. I think they should take away his pension though. He had to quit, not "retire". We owe him NOTHING!!!

Unfortunately, Torqued has gotten out of the website hosting business (I think as of Dec. 1). Consequently, the site to which we previously linked for the Community Assistant no longer exists. Torqued did zip up and send the files to reconstruct it here but I understand that Brad has been so busy that he doesn't know when he will have the time to put that together again at this site.

For Dredd, Doug et al: I haven't looked at the suit myself, admittedly. So I'm really guessing when I say that election fraud issues will be part of any publicity. But the 2003-2005 time frame allowed for claims suggests strongly the 2004 election is what this is all about.

Brad is being very circumspect here in not leaking details of the suit (sage legal advice, I assume). But speculating isn't against the law, so here are several possibilities I can see from my experience
under the rubric of "securities fraud."

1) Possible material misstatements in a prospectus,
e.g. "We are not aware of any legal action against us at this time," when in fact a suit was pending somewhere and officials in the company knew it.

2) Public representation of voting machines as being safe from hacking, when officials in the company knew otherwise. If someone bought the stock in 2003 based on public assurances by a Diebold executive that "negative rumors about our machines are unfounded," when said executive in fact knew of serious problems, that might amount to fraud.

3) Conflicts of interest between Diebold executives and the Republican party might have been omitted from a prospectus or publicly denied, leading to a false sense of security for buyers of the stock. Any prospectus, even for a routine debt offering, must list the company's executives by name and must cite any outside activity of theirs that might connect with company business. In Diebold's case, G.O.P. fundraising would certainly qualify, because they were selling election machines.

The neocons will not willingly give up power. The Christo-fascist-Zombie brigades will continue to follow their conspirators (like Blackwell - in Ohio - as was revealed on AAR a couple mornings ago) and their demagogues like Falwell, Robertson, Dobson, Perkins.... They will, like any scabrous pestilence, grow and grow until somebody or something stops them. The mass of Americans will continue in their stupor.
If the voting machines are abandoned, the repukes will simply permit another 911. Declare marital law, discard posse comitatus, send the protestors (now declared terrorists) to the camps. The web will be shut down. The corporatists will be pleased. The sheep will be in their pens. The wolves will dance. The great twilight will have begun.

#29...my bank has a diebold atm machine that spits twenty dollar bills all over the ground...(lots of fun on a windy day)...i`m switching banks...thank god we don`t have diebold voting machines in my state...we trounced that son-of-a-bush twice with #2 pencils...

The key date in the suit is October 22, 2003. People who bought the stock on or after that date will have representation as members of the class.

This almost certainly means that something key happened on that date. A prospectus was dated October 22 that contained (allegedly) deliberately misleading statements or material omissions. Or, a public statement came out of Diebold that was later shown to be false AND WHICH IT IS ALLEGED WAS KNOWN TO BE FALSE WHEN IT WAS MADE.

I seriously doubt this is a Martha Stewart-type case, i.e, Diebold insiders dumped the stock on that date knowing bad news was about to come out. If this were about that, someone who bought the stock a year later wouldn't have been affected and wouldn't be part of the class. But eligibility for the class extends to September 21, 2005.

If there are any Martha Stewarts at Diebold, they can be dealt with through the criminal courts. This is a civil action. I checked today's New York Times business section, but saw nothing about it there. If they follow their past history on electoral fraud matters, coverage will begin when the verdict is rendered.

The forces of good have to keep up the pressure. We must never give up until every last rotten, sicko Republican is driven from office, hopefully to die of some horrible disease, and become reborn in Avici hell (one of eight Buddhist hellsthe worst in fact).

Ok. You are describing an external action by a government agency. That could be, but what throws me off is the statement in Brad's post "Additional Individual, Union Owners of Diebold Stock, Mutual Funds Sought for Addition to Plaintiff Class".

The government does not bring stockholder actions under Civil Rule 23.1 (link here) generally because they are not stockholders. This is usually a type of action brought by owners of stock who are not happy with the way the company is being managed.

The two types of cases could not be further apart in remedy and in procedure. If it is a government action I can't, at this time, see how it could cause an improvement of the voting machines.

However, if it is a stockholder derivative action there could be some demands that the management of the voting machines be managed better.

At this point I am still at a loss to see how just damaging the parent company would automatically result in better voting machines. If they become strapped for cash it could actually harm the machines in the sense there is not enough company money to fix them.

Another one bites the dust after perilous efforts to do whatever it takes to win an election ....
The Bushevicks will make out whereas the others will not...
The advantage is inside information which ironically is infested inside the computer codes of Diebold..
and only the higher proliteriat have the inside information ....

For Dredd, re your post: The term "class-action" is usually applied to private suits, in my experience. I've seen many of these (in fact, I've been included in one myself and received $11 as I recall), and they follow a familiar pattern: "If you bought XYZ stock between (date) and (date), you are eligible to join the class. Please indicate if you choose to do so."

Some people (especially holders of large blocks, such as mutual funds, foundations, and pension funds) elect to opt out of the class action and sue on their own. Thus the option. But I don't recall ever seeing a government-initiated suit wherein specific dates of purchase are used to establish eligibility for class membership. Posbbily this one is the exception.

Regardless, the fact that specific dates were given points to a specific statement having been made by a Diebold official on Oct. 22, 2003, or a prospectus having been issued on that date, containing information that the plaintiff will argue is false and misleading. Because buyers of the stock all the way up until September of this year are eligible for class status, that tells me that the company made no effort to correct the alleged misstatement and/or repeated it. Given the time frame, I'm sure it has to do with 2004 Ohio election disputes.

At Kiwanis, it sounded as though "conspiracy-theorists" may have polarized your opinion concerning the current Diebold technology. It would be unfortunate if you were backed-up into a corner position where you may not be able to see some other broader issues.

In my dental office we back up data daily and we print a hard copy paper trail too. Every day this
printout is reconciled between the paper ledger. Why? Because my computers have failed in many
ways for many reasons. Most of the time it is due to operator error. Over the past 12 years, our
verified paper trail has proved to be worth the extra effort.

It is my hope that you will keep an open mind to continuing the improvements to voting technology
in Georgia.

US Rep. Rush Holt says this on his website, "The screen says your vote has been counted. As you
exit the voting booth, however, you begin to wonder. How do I know if the machine actually
recorded my vote? The fact is, you dont."

A Nation of Kitty Genovese's Neighbors
"History will have to record that the greatest tragedy of this period of social transition was not the strident clamor of the bad people, but the appalling silence of the good people." --- Dr. Martin Luther King, Jr.

I am only involved in Black Box Voting, and have no involvement with or ties with that site. I do not have an opinion on that site --- but as I recall, Black Box Voting did endorse an interesting concept, a "no more bribes" initiative, which had to do with removing corporate financing of candidates. I don't know if that ever got off the ground, but I think it was suggested by William Cushman, who is the owner of that site.

Thoughts on the Diebold situation from a 28-year veteran of the Wall Street jungle:

1) This explains why Diebold stock didn't rally after North Carolina and California decided to certify their machines after all. That was good news for Diebold, and the stock should have gone up. I think a few Martha Stewart types out there knew this bad news was about to break.

2) Class-action suits don't usually get settled quickly. They're prosecuted by large law firms that specialize in them, and because of the large plaintiff "class" there's a lot of paper work involved.
Most class-action suits don't attract much publicity, but in this case the defendant is a high-profile company, so it will make the papers...a lot. When it does, the election fraud aspects will be covered.

3) I think Shannon Williford is too pessimistic here. States might switch to E.S.&S. if Diebold loses the case, but the publicity from the Diebold suit will focus attention on the history of electronic vote fraud, and how Chuck Hagel won a miracle victory in the 1996 Nebraska Senate race just after selling his E.S.&S. machines to the state. We'll hear about Clint Curtis and the software prototype he designed for Yang Enterprises in 2000 to "prevent the Democrats from stealing the election in Florida."

At some point, I'd expect a major effort by the mainstream media to face the music and address the issue they've long avoided, i.e., "Does this mean that the last two elections were fraudulent?" In other words, to assign a team of investigative reporters, and do a series of articles on every aspect of the problem; not only the crooked companies, but the complicity of the polling outfits, the unwillingness of losing candidates to cooperate with good-government groups protesting fraud, the hypocrisy of believing Ukraine's election was rigged but ours couldn't possibly have been, and most of all the arrant cowardice of our elected officials (except Conyers, Boxer, Tubbs Jones and a few others) to step forward an acknowledge the truth.

I'll tell you the same thing I tell kids who are foolish enough to complain to me about being bored - we are not here to entertain you. If you have enough time on your hands to sit down at your computer, log on, look up a blog, read, then post about how boring it is, you don't have enough to do.

Interesting theory. I kind of wish Paul had told George W. Bush the same thing concerning Iraq's potential for nuclear weapons. Or his potential for weapons of mass destruction. Or his potential for harming the United States. Because all those potential risks were why we attacked Iraq.

Just for the record, if a class-action shareholder suit names specific dates for class eligibility, it means the lawyers have already prepared the paper work to go ahead with the suit. Diebold is now faced with two choices...fight the suit in court, or settle with the plaintiffs. If they do the first, they'll attract unwanted publicity to their political corruption. If they do the latter, they'll lose huge business and rupture their reputation.

George W. Bush is tossing restlessly in bed. He awakens to George Washington standing by him and Bush asks, "George, what's the best thing I can do to help the country?"

"Set an honest and honorable example, just as I did," then fades away.

The next night, Bush is astir again, the ghost of Thomas Jefferson moving through the darkened bedroom. Bush calls out, "Tom, please! What is the best thing I can do to help the country?"

"Respect the Constitution, as I did," Jefferson advises, and dims from sight.

The third night Bush awakens to see the ghost of FDR hovering over his bed. Bush whispers, "Franklin, What is the best thing I can do to help the country?"

"Help the less fortunate, just as I did," FDR replies and fades into the mist.

Bush isn't sleeping well the fourth night when he sees another figure moving in the shadows. It is the ghost of Abe Lincoln. Bush pleads, "Abe, what is the best thing I can do right now to help the country?"

For Jim Cirile and others: The lawsuit, as I read it, will pertain to public statements (or statements in a prospectus) regarding Diebold's corporate activities. Theoretically these statements could have to do with ATM machines or other activity having nothing to do with elections.

But that isn't likely, because of the time frame. In October, 2003 Diebold was defending itself against charges in Ohio about their machines. In fact, Ohio didn't use Diebold machines throughout most of the state because of this controversy. It was at this time, also, that Wally O'Dell was making boastful statements about doing whatever he could to insure Bush's re-election.

My gut instinct is that something went awry. Someone at Diebold crossed the line and made a public statement (or made it in a prospectus) about the safety of these machines that following Bush's (apparent) victory was found to be false.

The false statement was subsumed into the political process insofar as the election outcome was concerned. It became a "sore loser" allegation. But
Diebold's stock went down for reasons having nothing to do with who had been declared the winner in Ohio; the machines themselves were suspect, and the claims against the company would harm its ability to sell them going forward.

That's what the lawsuit is about. The firm handling the case isn't trying to overturn the 2004 election, it's claiming damages to stockholders who bought the stock on the assumption that the company's claims about its machines were honest. The good news for advocates of electoral reform is that in the process of adjudicating these claims, the truth about Diebold might well be known...and the truth about the 2004 election itself.

I hate to rain on this parade that would sink the evil Diebold, but these things usaaly end up with shareholders recieving $0.28 for every 100 shares they own and the lawyers wlking away with a couple million is fees. Then its businees as usual.

Class Action my ace. What about an honest judge who isn't a neocon/corporate sellout and a prosecuter who isn't a cowaring pussy to look at the evidence. INVESTIGATE..Hack Hack Hack - Exit Polls - No verifiable paper trails - Diabold/Triad ties to the Bushit administration and the ties to the TV networks. Who owns the TV networks? How bout depositions from people who know what went on? We do have the very factual evidence of the US Neocon/Corporate Sellout Majority CONGRESS who belched and ridiculed at the truth about another stolen election. Yes, they dropped the medicine ball on the heads of American voters. Famously, Senator John Kerry was in Iraq. He doesn't count votes and I don't count his opinion since he a BONESMAN RELATED TO BUSH who publically blames 9/11 for losing the election. Since he's satisfied with the FEMA investigative findings of 9/11 even though FEMA wasn't allowed at ground zero, didn't go to the site of the Pentagon damage until the following month, and stated "no explanation" for building #7 of the WTC imploding to the ground which was located ACROSS THE STREET from the twin towers. So who cares what loser thinks. Personally I think we should have a day of coronation and pagentry crowning the inbred majesty than witness another lie cheat and steal AMERIKAN BUSHIT ELECTION. Remember these words: When it comes to elections, DIEBOLD RULES and it's the corporate elite (the PEOPLE WHO OWN THE OIL COMPANIES) who WIN no matter how U vote.

For MDOG: It's true that the lawyers in class-action suits make out better than the shareholder victims.
But I don't see that as the point here.

Assuming the suit goes forward, the ball is in Diebold's court. They have two choices: Fight it on the merits, or pay a fixed amount agreed to among the lawyers for both sides, which is then divvied up.

If they fight the case, the struggle for seats in the courtroom will be a separate story. The Toledo Blade will be there, and the Cleveland papers. Thanks largely to the Blade, fraud in Ohio is no longer seen as "conspiracy theory." It's real. Diebold's lawyers will try to limit the damage, but the risk for Diebold (and Bush) will be that the trial will really be about the 2004 election's legitimacy.

If they settle for any amount, it will be taken as an admission that the machines are hackable. As far as I know, Diebold has never admitted to problems with any of their machines. They have no wiggle room on this. If they settle the case (or fight it and lose), I can't imagine how they'd ever sell another voting machine anywhere, because public-interest groups in the individual states would file their own lawsuits to prevent it from happening.

The bottom line here is that the burden is shifting from conspiracy theorists having to prove fraud to a company having to choose how to defend itself. If Diebold's stock didn't trade publicly, insiders at the company could say pretty much anything they want about their machines, and it would remain a matter of their credibility with state election officials.
But when an officer of a public company states publicly (or writes in a prospectus) something that is both relevant to the company's performance and deliberately false or misleading, then class-action suits become the usual result.

The 23-month time frame for class eligibility is revealing, I think. It means that the plaintiff isn't just saying, "On Oct. 22, 2003 Diebold made a material misstatement that caused people to buy the stock." The suit is saying instead, "For 23 months beginning on Oct. 22, 2003, Diebold has been insisting that the statement made on that date was not false and misleading, thus everyone who bought the stock during that period is entitled to redress...because it was false and misleading."

A company that stubborn just might decide to fight it out in court. Even if a jury awarded nothing to the plaintiffs in the end, Diebold could still lose in the court of public opinion because of the adverse publicity. I promise you, MDOG, Ken Blackwell and George W. Bush don't want this case to go to court.